Keys Risk Factors continued...

Exploration and Mining

Exploration is costly and involves exacting techniques which must be applied over extended periods of time. The Company’s projects are at exploration stage and the Company cannot foresee whether the planned exploration programmes will generate positive results. Furthermore, there is no guarantee that the Company’s exploration activities will succeed in the discovery of a commercially viable ore deposit.

Mining risks include the uncertainties associated with projected continuity of an ore deposit, fluctuations in grades and values of the product being mined, and unforeseen operational and technical problems.

Exploration and mining may be adversely affected or hampered by a variety of non-technical issues such as limitations on activities due to seasonal changes, industrial disputes, land claims, legal challenges associated with Native Title claimants, heritage and environmental matters and legislation, mining legislation and many other factors beyond the control of the Company, including many that are partly or wholly unforeseeable.

The cost of maintaining exploration and mining properties, which depends on the Company having access to sufficient development capital, poses another form of risk.

If exploration or mining programmes prove to be unsuccessful, this could result in a diminution of the value of the tenements which could have a negative impact on the Company's share price.

Any of the Company’s tenements may be relinquished either in total or in part and/or the Company may withdraw from a joint venture or not exercise its option to acquire equity, even though a viable mineral deposit may be present, in the event that

exploration or production programmes yield negative results,

insufficient funding is available,

such a tenement is considered by the Company to not meet the risk: reward or other criteria of the Company

its relative perceived prospectivity is less than that of other tenements in the Company’ portfolio which take a higher priority,

or a variety of other reasons.

The Company may also be exposed to risks associated with the financial or performance failure, default or litigation (actual or potential) by a participant in any of the joint ventures or other contractual relationships to which the Company is, or may become, a party.

Liquidity and Realisation Risks

There can be no guarantee that an active market in Securities will develop or that the price of Securities will increase. Moreover, there may be relatively few buyers or a relatively high number of sellers of the Securities on the ASX at any given time, which may increase not only the volatility of the market price of the Securities but also the prevailing price at which the Shareholders can sell their Securities. This may result in Shareholders receiving a market price for their Securities that is less than the price paid for their Securities.

Sharemarket Conditions

The price of the Company’s shares quoted on the ASX is influenced by international and domestic factors or even on a day to day basis by individual investor’s decisions to buy or sell the Company’s securities. Should these produce a negative effect on the share price, this may also affect the Company’s ability to raise development capital.

Commodity Price and Demand, and Exchange Rates

The Company’s projects were selected principally on the basis of their prospectivity for various minerals as perceived by the Company. Therefore it would be reasonable to expect that the Company’s market appeal, and in the event it commences mining, its revenue will be affected by the price of such minerals. Mineral and metal prices may fluctuate widely and are affected by numerous industry factors beyond the Company’s control.

The Company’s projects now extend to a variety of commodities and carry with them the risks associated with fluctuations in the price of such commodities.

General Economic Factors and Investment Risks

General economic conditions may affect inflation and interest rates, which in turn may impact upon the Company’s operating costs and financing. Other factors that may adversely affect the Company’s activities in Australia include changes in government policies, natural disasters, industrial disputes, and social unrest or war on a local or global scale. Some of these risks include:

Currency Exchange Rate Fluctuations

Fluctuations in currency exchange rates can also affect the value of investor’s security holdings and needs to be considered.

Taxation

Changes to tax legislation and regulation or their interpretation may adversely affect the value of an investment in securities and may affect Shareholders differently.

Accounting Standards

Changes in accounting standards or the interpretation of those accounting standards that occur after the date of this Prospectus may impact adversely on the Company’s reported financial performance.

Acts of Terrorism or an Outbreak of International Hostilities

Acts of terrorism or an outbreak of international hostilities may adversely affect the demand for the Company’s products. These, or an associated adverse change in sentiment with respect to the share market, could negatively impact on the value of an investment in the Company.

Unforeseeable Risks

There are likely to be risks that the Directors and the Company and its advisors are unaware of or do not fully appreciate at any point in time. Over time or with the benefit of hindsight these sometimes become apparent. Such risks may be related to legislation, regulation, business conditions, land access, conflicts and disputes at a local or international level, data issues and a variety of other unforeseen eventualities.

Time and Capital

It is important to appreciate that the consent process is a time and capital consuming process. In addition, the current boom conditions prevailing throughout the Australasian mining industry have resulted in a shortage of experienced geological, land access and other industry personnel.

Forward Looking Statements

Forward-Looking Statements are statements included herein, including regarding future ability to finance projects and other statements that express management's expectations or estimates regarding the timing of completion of various aspects of the projects' development or of our future performance, constitute "forward-looking statements".

The words "believe", "expect", "anticipate", "contemplate", "target", "plan", "intends", "continue", "budget", "estimate", "may", "will", "schedule", and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies.

In particular, the Company’s announcements and presentations include many such forward-looking statements and such forward- looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Aurora Minerals to be materially different from its estimated future results, performance or achievements expressed or implied by those forward- looking statements and its forward-looking statements are not guarantees of future performance.

Aurora Minerals expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, events or otherwise, except where required by law.